BUSINESS

Brazil Sues BYD, Contractors for Keeping Workers in ‘Slavery’-Like Conditions

Published: May. 29, 2025 8:06 p.m. GMT+8

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Blueprints and a rendering displayed at a BYD Brazil factory under construction in Camaçari on Jan. 10, 2025. Photo: Bloomberg

Brazilian prosecutors said they are suing Chinese electric vehicle (EV) giant BYD Co. Ltd. and two of its contractors, accusing them of trafficking Chinese workers to build a plant for the automaker in Camaçari and subjecting them to conditions “analogous to slavery.”

The civil lawsuit was filed Tuesday with the 5th Labor Court of Camaçari after BYD and its contractors — China JinJiang Construction Brazil Ltda. and Tecmonta Equipamentos Inteligentes Brasil Co. Ltda. — refused to sign a conduct adjustment agreement, the Public Labor Prosecutor’s Office (MPT) in the state of Bahia said in a statement.

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Brazilian prosecutors filed a civil lawsuit against BYD and two contractors, alleging trafficking and exploitation of 220 Chinese workers at a plant in Camaçari.
Prosecutors seek 257 million reais ($45 million) in collective damages, individual compensation, and fines for labor violations including substandard living conditions and wage withholding.
BYD aims to open three factories in Bahia, plans investment of 3 billion reais, targets 10,000 jobs, and held 8.3% of Brazil's auto market in March 2024.

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Who’s Who

BYD Co. Ltd.: BYD Co. Ltd. is a Chinese electric vehicle (EV) giant expanding rapidly in Brazil. Since 2014, BYD has introduced electric forklifts, trucks, and passenger cars in the country, operating over 180 dealerships. The company plans to invest 3 billion reais in three new factories in Camaçari, Bahia, expected to create 10,000 jobs. In March, BYD achieved an 8.3% market share in Brazil’s auto market, selling 6,881 vehicles.

China JinJiang Construction Brazil Ltda.: China JinJiang Construction Brazil Ltda. is one of BYD’s contractors accused in a Brazilian lawsuit of trafficking Chinese workers and subjecting them to conditions “analogous to slavery” during the construction of BYD’s new plant in Camaçari. The company allegedly recruited 220 Chinese workers, who were found living in cramped, unsanitary accommodations. Prosecutors also say the workers faced withheld wages, improper visas, and other labor violations.

Tecmonta Equipamentos Inteligentes Brasil Co. Ltda.: Tecmonta Equipamentos Inteligentes Brasil Co. Ltda. is one of two contractors, along with China JinJiang Construction Brazil Ltda., sued by Brazilian prosecutors for allegedly trafficking Chinese workers and subjecting them to conditions "analogous to slavery" during the construction of BYD's plant in Camaçari. The company reportedly hired and managed Chinese workers who faced poor living conditions, improper visas, withheld wages, and other labor violations during the project.

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What Happened When

2014：: BYD set up a local subsidiary in Brazil to oversee the sale of electric forklifts, cargo vehicles, and trucks.

December 2021：: BYD introduced a Tang electric SUV in Brazil, entering the country's passenger car market.

July 2023：: BYD announced plans to invest 3 billion reais to build three factories in Camaçari, Bahia.

2024：: An investigation led to the rescue of 220 Chinese workers from BYD's construction site in Camaçari.

March 2025：: BYD sold 6,881 vehicles in Brazil, capturing 8.3% of the overall market.

As of May 2025：: BYD had more than 180 dealerships in Brazil, aiming to increase the number to 272 by the end of 2025.

Tuesday, May 27, 2025：: Brazilian prosecutors filed a civil lawsuit against BYD and its contractors over alleged labor trafficking and labor rights violations.

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